Libya will announce early next year which companies have won its first tender for oil and gas exploration licenses in nearly two decades, marking a significant reopening of the country’s petroleum sector to international investment after years of political instability.
The winners of the new licensing round for foreign companies will be announced between February and March, according to Hussain Safar, a board of directors member at the National Oil Corporation, who made the statement in Tripoli. The permits notably concern promising offshore areas in a country that holds Africa’s largest oil reserves, estimated at 48.4 billion barrels.
Libya’s last call for tenders for hydrocarbon exploration occurred in 2007-2008 and focused on natural gas exploration. The authorities launched their latest public tender in March in a bid to draw major global energy companies back to the resource-rich country after years of political instability and fluctuations in production levels.
The announcement comes as Libya remains split between a United Nations-recognized government in Tripoli, led by Prime Minister Abdulhamid Dbeibah, and commander Khalifa Haftar’s administration in the east. The North African country has been divided since a NATO-backed revolt toppled and killed longtime leader Moamer Kadhafi in 2011.
Despite ongoing political challenges, the licensing round signals renewed international confidence in Libya’s petroleum sector and represents a major step toward attracting foreign investment and expertise to develop the country’s vast hydrocarbon resources.Source: hurriyetdailynews.com